Deutsche Bank initiated coverage on Extended Stay (NYSE: STAY) with a Buy rating and a price target of $30.00. Analyst Chris Woronka called the stock a compelling niche growth story.

"A somewhat limited public float notwithstanding, we believe STAY can (and should) be widely owned by lodging investors seeking differentiation in a group that is increasingly homogenous to two models: brand managers and Luxury/Upper Upscale-focused hotel REITs. We also believe it fits into broader consumer-centric growth and/or GARP type portfolios given reasonably attractive valuation against other growth names in retail and restaurants. STAY provides investors with the added "juice" of above-trend EBITDA growth and a solid dividend," said Woronka.

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